Tuesday, 29 May 2012

I observe that a new intellectually-castrated character, 'Star,' has been posting familiar, provocative, Amspeak bull-shit on Corporate Frauds Watch. Even though 'Star' recites the'Amway' fairytale perfectly, he/she steadfastly pretends to be completely independent of 'Amway.'

Possibly the most laughable line which 'Star' keeps regurgitating, is that 'Amway gives hope to people all over the world.'

In the adult world of quantifiable reality, 50+ years of evidence (in the form of an effectively total lack of payment of income tax by so-called 'MLM business owners') proves beyond all reasonable doubt that the authors of the 'Amway/MLM' fairytale have become billionaires by peddling tens of millions of poor people, false hope.

So-called 'MLM income opportunities' (which have all been copy-cats of 'Amway') are a means of getting vulnerable persons to commit financial and psychological suicide, and to destroy them with guilt.

I think that it is pretty safe to say that 'Star' is yet another reality-inverting invention of the rats at the 'Amway' Ministry of Truth; and, curiously, if you invert the pseudonym, 'Star,' that is exactly what you find.

Sunday, 27 May 2012

For the amusement of your free-thinking readers, the following, is a familiar lie recently-received by Corporate Frauds Watch in the form of an unsubstantiated comment signed Ramesh Sharma:

'I am making money 2K-3K per month from Amway Business..and that too people come to my home and buy the products...what I was asking to you to let us know any other legal option to make extra income without any investment with guaranteed success ( if you work hard....)'

As ever, this demonstrably-deluded fellow steadfastly pretends to be making money out of 'Amway'and selling products, but he offers absolutely no quantifiable evidence to support this absurd fairytale, because no such evidence exists.

In the adult world of quantifiable reality, for more than 50 years, virtually no 'Amway' wampum has been retailed to the general public for a profit by 'Amway' adherents.

No matter what millions of deluded victims like Ramesh Sharma have claimed, the so-called 'Amway business/income opportunity' (which is the title for a dissimulated closed-market swindle) has been hiding an effectively 100% churn/loss rate.

Thursday, 24 May 2012

Professor Muhammad Yunus is a Bangladeshi economist who, in 1976, attempted to tackle the problem of world-poverty by founding the Grameen Bank. This common-sense institution now distributes more than $100 millions of low interest, small (or micro-credit) loans annually, to persons (mostly women) without collateral, in order to help them to escape the poverty-trap by starting their own businesses and achieving financial self-sufficiency. Muhammad Yunus was awarded the Nobel Peace Prize in 2006, along with Grameen Bank, for their campaign to create economic and social development around the world.

Amongst many other international awards, Muhammad Yunus received the Presidential Medal of Freedom from Barack Obama, in 2009.

Although technically it is not classified as a bank in the USA (because it can't accept deposits from the public), in 2008, Grameen America opened its first Branch in the New York borough of Queens. This was followed in 2009, with a branch in the South Side of Omaha, Nebraska, where almost all borrowers have been unemployed, women immigrants from Latin America.

It has recently been reported that many of the poor women who received their initial $1500 loans from Grameen America in New York and Omaha, have been persuaded to pour this borrowed-cash into 'Herbalife' and other 'MLM income opportunity' frauds, believing that they were going to achieve total financial freedom through buying a quota of products each month whilst recruiting their friends and relatives to duplicate the same endless-chain plan. In this way, numerous empty stores in Omaha were transformed into so-called 'Herbalife Nutrition Clubs.' These were typically draped with green curtains and decorated with posters of soccer stars who play for clubs sponsored by 'Herbalife.' Sadly, a number of these so-called 'Herbalife Clubs' have already vanished and the loans which were used to create them, have not been repaid.

'Herbalife income opportunity' propaganda from the UK

In reality, all so-called 'MLM income opportunies' have been dissimulated closed-market swindles (i.e. without a significant or sustainable source of revenue other than that deriving from their own contributing participants, due to the fact that 'MLM' products have always been effectively-unsaleable on the open market). Classically, other than an insignificant minority of schills at the top of these pyramids, all so-called 'MLM income opportunities,' have had an 100% rolling loss/churn rate, whilst this key-information has been deliberately hidden from the public by their instigators.

Until recently the Grameen Bank has operated a policy of trusting its clients to make their own choice of business. However, for obvious reasons, certain Grameen staff have belatedly begun to advise their American borrowers not to get involved with 'Herbalife' in particular, and with 'MLM' in general.

It is interesting to note that the US federal government's Small Business Administration (without actually naming any so-called 'MLM' companies, because that is forbidden by law) specifically lists all 'pyramid sales plans' as being ineligible for financial assistance; describing them as:

... 'plans, where a participant's primary incentive is based on the sales made by an ever-increasing number of participants. Such products as cosmetics, household goods, and other soft goods lend themselves to this type of business.'

Tuesday, 22 May 2012

The free-thinking readers of Corporate Frauds Watch should be interested to learn that a person signing himself/herself, Carmel Muggeridge from Australia, has attempted to post (in the form of a comment) propaganda on CFW for an 'MLM income opportunity' fraud known as 'Lyoness.' The boss of this blame-the-victim 'Prosperity Gospel' cult, is an Austrian, Hubert Freidl.

The following, is an English translation of an article (recently published in Switzerland) which begins to expose 'Lyoness' as an 'Amway' copy-cat, i.e. a reality-inverting organized crime group that peddles a plan to achieve 'Utopia,' but actually steals its victims' money and tears their families, and friendships, apart (for legal reasons, some of the names of the dangerously-deluded 'Lyoness' recruiters, described in this article, have been changed):

' "Are you interested in earning thousands of francs? Join Lyoness." announces *Angelo, with an assured voice and a charming smile. The handful of onlookers, gathered at a hotel in La Chaux-de-Fonds, listens to this modern-day prophet open-mouthed. Armed with a polished PowerPoint, this thirty-something presenter gives the recipe for his miracle solution: join the Lyoness community of buyers. Native to Austria, the company claims to have attracted two million people in twenty-three countries, including 12,000 in Switzerland. It promises its members to get discounts, to recover money on their purchases, or to even earn tens of thousands of francs in cash.

Members can choose: to make money slowly, quickly hit a jackpot, or both. The first method is to acquire a membership card that Lyoness says is free. In reality, it is obtained against the purchase of CHF 450 of gift vouchers in partner companies and offers 1% to 6% discounts from these brands. In this network, which is poorly developed in Western Switzerland, there are small traders, such as service stations Jubin in Jura or Boky, a Chinese restaurant in Lausanne.

A robust approach is applied to converting people into business partners. By investing 3,000 francs in the company, members can withdraw 25,000, provided in turn they recruit a number of investors. That February night in La Chaux-de-Fonds, we will not know exactly how many, such is the apparent complexity of setting up the system. Presented in diagrams, Angelo is excited about the system’s miraculous formula. "It's very complicated," says Josiane*, a lady in her sixties. "No need to understand, it works by itself," interjects an associate of Angelo. "It's fantastic", she says finally. Too fantastic.

Complaints of fraud are springing up everywhere, including in France, Austria and Switzerland. "Very often, people get a few hundred francs, but never more, said Eric Breiteneder, an Austrian lawyer in charge of more than 50 cases related to Lyoness. To our knowledge, nobody has got the famous 25,000 francs."

The problems go back to the heart of the system. "The return of money from the entry of new investors reflects the principle of the Airplane Game," said Fabien Rouiller, a lawyer in the The Commission on Lotteries (Comlot). Also called a Ponzi scheme or pyramid selling, the system is based on the fact that profits are derived from recruiting new members, and not a sale. As long as new members are available, it works. Once the resources are exhausted, everything collapses, leaving those at the top of the pyramid with the most money.

How has the company survived until today? "The law explicitly prohibits this system”, explains Yannick Buttet from the commercial enforcement authority in Valais. “But in addition to the Airplane Game, Lyoness can get discounts. The combination of the two confuses the issue. We are in the grey area. It's very clever." The Austrian Eric Breiteneder agrees: "To launch a trial is often more expensive than the amount invested, hence the longevity of Lyoness (founded in 2003, ed.)"

The damage being caused by Lyoness exceeds the monetary losses, tearing apart families and friendships. "The group works on sponsorship”, attests Anne-Valérie Pinet, a French lawyer who represents the first complainant. “Members are trained by relatives, who are not wary of anything. But once the scam is revealed, the links break." From the outset of the proceedings, the lawyer and his client were subject to threats from the victim's relatives.

Emotion is intensified because of the close relationships that are integral to Lyoness. "These people are fanatics or religious," says Eric Breiteneder. Rituals, a dress code to follow – wearing badges is obligatory - Lyoness regularly organises international meetings. "It sounds like a great mass," said the lawyer. Dance, song, it is a moment for worship. The founder and CEO of Lyoness, the Austrian Hubert Freidl, also engages in the show. Always present in the company's communications, the balding orator is the subject of boundless admiration. "This is our benefactor," said Angelo. Little information is known about the guru. His two partners, Tzvetan Streif and Hubert Wagner, come across as experts in casino games and chance. The three chair the mysterious Lyoness Child and Family Foundation. "This foundation is used to move money from one country to another. But nobody really knows where his money comes from and where it goes," said Eric Breiteneder.

The international headquarters of the company is based in Buchs (SG) "for tax reasons," according to Angelo. But Eric Breiteneder emphasizes its other function: "All contracts of overseas members are signed with the Swiss entity. Swiss members sign a contract with the Austrian group. The reason: they seek to complicate legislative procedures in the event of a trial. "A Swiss firm has received a complaint from former employees of the firm who would have had access to documents proving the fraudulent activities of Lyoness." Today, the law does not allow the Swiss authorities to actively fight against the company. But the State Secretariat for Economic Affairs [SECO] will soon be able to get involved," says Fabien Rouiller of Comlot. From 1st April, the change in competition law will provide SECO with new legal powers, which will finally allow it to seize the files. When contacted by L'Hebdo, SECO said it could not rule before the new law comes into force. But the lawyer in charge of the Swiss case revealed: "Lyoness is frightened, and is seeking to move its headquarters to Luxembourg before the deadline." Lyoness was contacted several times at its bases in Switzerland and Austria, but refused to respond to our questions.'

Monday, 21 May 2012

I observe that Sridhar Pothula has left the following, reality-inverting 'Amway' propaganda, and provocative question, on Corporate Frauds Watch

'But Amway is Going like a Rocket World Wide.. from 2010 March to 2011 march.. Amway India has Paid 200 crores, of Rupees Sales Tax for they Products in India.. still every month. Market is Growing very Fast in Amway business. still you say it not a good company?.. My friends are Getting 65000/rs per month. i see lot of IT manager working for Amway including me. Amway is the best to earn money. and Good Quality Products. or can you please explain any good product in India is 100% chemical free product?. If your statement is right, then how Amway paid 200 crores of Tax?.'

As ever, this demonstrable liar does not offer to supply any quantifiable evidence in the form of audited accounts (particularly, income-tax payment receipts) to support the absurd fairytale that it is possible to earn sixty five thousands Rupees per month by regularly retailing 'Amway' wampum directly to the Indian general public for a profit.

Even though billions of Rupees of sales-tax might have been paid to the Indian government by 'Amway India Enterprises,' the bulk of all so-called 'sales' declared by'Amway' in India, have not been authentic retail transactions. On the contrary, they have been laundered-payments into a vast, dissimulated closed-market swindle or money circulation scheme.

In simple terms, the only people who have been buying the effectively-unsaleable 'Amway' wampum have been persons like Sridhar Pothula - the deluded victims of a self-perpetuating cultic fraud. This makes the Indian government a major-beneficiary of ongoing, major racketeering activity, and it is yet another reason why the Indian government does not want to tackle the growing-problem of 'MLM income opportunity' fraud.

If Sridhar Pothula really is an 'IT manager,' as he claims, then, before he got involved with 'Amway,' he really should have used his critical, and evaluative, faculties, and first tried to obtain some quantifiable information from persons claiming to be earning money from 'MLM.' In simple terms, this wide-eyed little fellow should have insisted on seeing audted accounts. However, it is not too late for Sridhar Pothula to grow-up and do some serious thinking . He should immediately re-enter the adult world of quantifiable reality, and accept that he has never seen any real proof that a significant number of persons have received an overall net-income from regularly retailng 'Amway' wampum directly to the general public for a profit.

In the mean time, Sridhar Pothula can read all about how 1.7 billions dollars was suddenly wiped-off the share-value of an'Amway' copycat 'MLM income opportunity' racket 'Herbalife,'in the USA, simply because a celebrity hedge-fund manager, David Einhorn, publicly asked what percentage of the company's declared 'multi-billion dollar sales' are authentic retail transactions - a key-question which the billionaire bosses of this particular 'MLM income opportunity' racket were unable to answer. It is also interesting to note that 'Herbalife'has also been paying retail sales tax on all its fake 'retail sales.'

Monday, 14 May 2012

It sounds like a scene right from a comedy film. In fact, it is a tragedy. It is a classic case of how people are carried away when they're overtaken by greed. Children of a colony in Guntur city and near by villages had undergone mass tonsure after their parents were told that they would get huge amounts if they got tonsured the heads of their wards.

One Mrs Sailaja, a resident of a colony in Guntur city received a call recently from a mysterious person asking her to tonsure the heads of her children in order to get huge money. After getting the same call again, she has decided to tonsure the heads of her children. The news immediately caught like a wild fire and many parents of nearby villages also got their children rushed to the nearest barber shops to get tonsured. It started small but soon it became a feverish activity in the town.

There are a sizable number of tonsured heads in Guntur and nearby villages.

Mrs Sailaja, who was the first one to be cheated, says, "He (the mysterious caller) persuaded us to tonsure our children by continuously calling us on phone. We heeded his advice as he promised us money. Now his phone is switched off."

Some people claim that the caller was one Mohan Rao of Narasaraopet, a small town near Guntur. Some others suspect that it is a trick played by some person to fulfill his offering to god.

Ms Shahanaz says. " I cut my daughter's hair which was long and beautiful. Now I repent. Parents in the nearby villages also tonsured their children.

Some parents lodged a complaint with the police demanding the arrest of the unknown trickster.

Sunday, 13 May 2012

Honestly!! I have heard a lot of Herballife and people bling about THE best in this world.Maybe !!But today (May 12) I went for a Herbalife seminar and I was conned by the so called independent distributor. I am from a T&D background and deal with various real estate and media firms. The distributor, Prasad Dhavale from Pune told me it is an online training opportunity and when I went there they were asking to pay money and buy their product and push to our local crowd.Those who are pure Herbalife lovers, my question goes to you !! How do you justify this method of making references and making money out of it? Maybe your product is the best (which is a myth) but here it is about ethics (I know the word ETHICS is alien to you) and yes think from stepping in the other person's shoes. The way they approach, the lies and waste others money and time. Its wrong and best part is some big boss from HBL screamed we don't do celeb endorsement or marketing. Then why there is Beckham and Messi and Virat Kohli doing on your company's presentation? Munching your powder for free?Come on !! Majority of the world is run by fools but majority doesn't mean 100% are fools. Just try to be honest and ethical because you believe your product is the best. Then why do you hide and lie to people??